Govt may open up FDI for e-commerce sector in a calibrated way

Commerce and Industry Minister Nirmala Sitharaman said that an entity is permitted to undertake retail trading through e-commerce under certain circumstancesPTI | December 24, 2015, 12:42 IST

Nirmala SitharamanForeign investment in business to customer (B2C) e-commerce activities has been opened in a calibrated manner, Parliament was informed on Wednesday.

Commerce and Industry Minister Nirmala Sitharaman in a written reply to Rajya Sabha said that an entity is permitted to undertake retail trading through e-commerce under certain circumstances.

Mentioning the circumstances, she said a manufacturer is permitted to sell its product manufactured domestically through e-commerce retail.

Also, a single brand retail trading firm operating through brick and mortar stores, is permitted to undertake e-retailing.

"Foreign investment in business to customer (B2C) e-commerce activities has been opened in a calibrated manner and an entity is permitted to undertake retail trading through e-commerce under the (certain) circumstances," she said.

As per the policy, FDI up to 100 per cent is permitted in B2B e-commerce.

Replying to a separate question on tobacco she said, the Department of Industrial Policy and Promotion (DIPP) has confirmed that there is no restriction on manufacture of four items namely 'guthka', 'scented khaini', flavoured chewing tobacco and 'pan masala'.

She said there are 16 pan masala manufacturing units in Kandla SEZ, 5 units in Surat SEZ and 4 are engaged in manufacturing of tobacco related products in Noida SEZ.

A proposal for establishment of a new unit for manufacturing of the said four items in Kandla SEZ was referred by the SEZ to the Commerce ministry.